MP petrol pump dealers to stop accepting UPI payments above ₹2,000 from October 15
Petrol pumps across Madhya Pradesh will stop accepting UPI payments above ₹2,000 from October 15, citing financial losses due to a newly imposed 0.4% merchant discount rate (MDR). The MP Petrol Pump Association, representing 4,700 dealers, stated they would only accept cash for transactions exceeding this amount, impacting rural consumers.
Why it matters
This decision could significantly impact the adoption of digital payments in India, particularly for fuel purchases and in rural areas, potentially increasing reliance on cash and affecting the government's push for a cashless economy.
Starting October 15, petrol pumps across Madhya Pradesh will stop accepting Unified Payments Interface (UPI) transactions above ₹2,000, citing losses due to the newly imposed merchant discount rate (MDR).The decision was taken unanimously at a meeting of the MP Petrol Pump Association, which represents 4,700 dealers statewide. Dealers said they will accept only cash for payments above ₹2,000, refusing to bear the 0.4% MDR introduced by the Centre.Also read | Govt preparing system to ensure UPI fee doesn't hit customers: ReportAssociation president Ajay Singh said, “Petroleum dealers across the state are opposing the central government’s new policy.
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